Everything you need to know about applying for a mortgage
Buying a home is one of the biggest investments you will ever make. Let us guide you through every step of the process, from your first meeting with a mortgage advisor to the moment you move in.
Are you buying your first home?
Have you calculated your monthly payments? How much of a down payment can you afford? Have you budgeted for the appraisal and legal fees? We've got a six-step guide to buying your first home.
Our 4 step-guide to getting a mortgage
Prepare for the meeting with your mortgage advisor
Before the meeting, review your needs and financial goals to determine how much you can spend on your home. Do you know your credit score? Be sure to find out: advisors need a complete overview of your finances so they can recommend the best solution.
Make sure you have all the documents you need
Your advisor will need to look over certain documents to assess your borrowing capacity. These include proof of income and documents showing your financial situation (investments, RRSPs, etc.) and information on the property you're interested in.
Click on the links below for a complete list of documents to bring to the meeting.
Can't afford a 20% down payment? You can put down as little as 5% on your mortgage loan when you take out loan insurance with the Canada Mortgage and Housing Corporation (CMHC) or SagenTM (formerly known as Genworth).
Apply for mortgage financing
Have you made an offer on the home of your dreams? Give the offer to your advisor along with all the other required documents, including proof of down payment and income (bank statement, etc.).
The next step is the property appraisal. National Bank bases the amount of your financing in part on the market value of the property. Sometimes, the Bank will require a certified appraisal, in which case professional fees should be taken into account. If all the conditions are met, your financing application should be accepted.
Once the legal professional has registered the property in your name, you'll need to come in and sign the official documents (deed of sale, mortgage deed, tax documents, etc.). Then, the Bank will disburse the funds to the legal professional so the seller can be paid.
Going forward, your advisor can help with any changes you want to make to your mortgage, such as increasing the amount or frequency of your payments (some conditions apply). Advisors can also help you choose the right loan insurance to cover your payments if you find yourself in a difficult situation.